Just when it seemed that the euro, the new European single currency, might begin to stabilise on the international markets, the resignation of the entire EU Commission presents yet another hurdle for the fledgling currency.
Whatever the short-term market reaction, the crisis in Brussels raises serious questions about economic policy co-ordination across the EU and creates a climate of uncertainty which will trouble investors.
After a shaky couple of months, the euro looked steadier towards the end of last week with the departure of the former German finance minister, Mr Oskar Lafontaine. Just yesterday, EU finance ministers were engaged in talking up the prospects of the euro-zone economies. Now, any "feel-good factor" which might have been building towards the euro has been overtaken by the unprecedented resignation of the entire Commission and the uncertainty over what is going to happen next.
The financial markets hate uncertainty, so the extent of the initial market reaction this morning will depend on the view investors take of whether the governments of the EU can move quickly to sort out the mess and appoint a new Commission.
There was talk last night of an emergency summit and certainly the governments can waste no time if a damaging policy vacuum is not to occur. Any sign of a lengthy hiatus could sharply reduce the value of the euro and dent confidence in the ability of the EU to manage its affairs.
The consolation, from the point of view of investors, is that the EU Commission has a limited enough role in the day-to-day running of the euro-zone economies. The monetary reins are firmly in the hands of the European Central Bank and it certainly will not be cutting interest rates any time soon in the face of such uncertainty. Furthermore, the ECB operates independently of the EU Commission.
However, the Commission does have a role in economic management and overseeing the economies of member-states, and it plays an even bigger part in setting longer-term policy in areas such as competition and in representing EU member-states on the world stage.
A quick move to appoint a new Commission is essential to maintain economic confidence in the euro zone and to the ongoing conduct of business across the Union.
The uncertainties now created are substantial. Where does the resignation of the Commission leave last week's agreement on reform of the Common Agricultural Policy? And what does it mean for the Agenda 2000 discussions and the negotiations on Ireland's share of EU structural funding? And might a new Commission take a more aggressive view of the Republic's corporate tax incentives.
The financial markets will initially be looking for a statement from Mr Jacques Santer on what happens next. The views from national capitals will also be closely monitored. The EU will have to show that policy remains on track if the confidence of the markets is to be retained.
If the EU governments can get the show back on the road quickly with a restructured Commission, then the damage to investor confidence may be short-lived. However, after boasting a few weeks ago about creating a currency to rival the US dollar, the EU must now show that it can manage its own affairs competently if sentiment towards the new currency and all it represents is not to worsen further.